Blu contract manufacturer Smoore Group expects net profit to fall 60% year-on-year after exclusive c

Smoore Group (02182.HK) announced on July 21 that it expects revenue for the six months ending June 30, 2023, to decrease by approximately 30% compared to the revenue of HKD 571 million for the same period in 2022, and net profit for the same period to decrease by approximately 60% compared to the net profit of HKD 48.6 million in 2022.

The board believes that the expected decrease in revenue and net profit is primarily due to a decline in sales of electronic cigarette products. As disclosed in the company's announcements dated March 14, 2022, and June 14, 2023, sales orders for electronic cigarette products have declined during this period due to the cancellation of exclusive agreements between major customers of electronic cigarette products.

Public information shows that as a well-known integrated injection molding solution provider, Smoore Group has expanded its business into electronic cigarette product manufacturing by OEM for Blu, a brand under Imperial Brands.